SEC News Digest

Commission announcements

The Securities and Exchange Commission today announced the panelists and final agenda for the Money Market Funds and Systemic Risk Roundtable to be held May 10.

The roundtable will address:

The potential for money market funds to pose a systemic risk to broader financial markets – what makes money market funds vulnerable to runs and how should the role of money market funds be viewed through the prism of systemic risk analysis.

Possible options for further regulatory reform and their implications, including floating NAV, bank regulation, and options that reflect a hybrid of these regulatory approaches: a private liquidity bank; mandatory reserve or capital requirements; and liquidity fees.

The agenda and list of panelists can be found on the SEC website.

The roundtable discussion will begin at 2 p.m. and be available by webcast on the SEC website. The webcast also will be archived for later viewing. Public seating to view the webcast will be available in the auditorium at the SEC’s headquarters at 100 F Street NE in Washington, D.C.

Members of the public who wish to provide their views on the matters to be considered at the roundtable discussion may submit comments to the comment file for the President’s Working Group Report on Money Market Fund Reform, as noted below. Comments to the Commission may be submitted by any of the following methods:

Paper Comments

All submissions should refer to File Number 4-619. To help process and review your submissions more efficiently, please use only one method. The Commission will post all public comments on the SEC website. Please note that all comments received will be posted without change. The Commission does not edit personal identifying information from submissions. Submit only information desired to be made available publicly. (Press Rel. 2011-107)

Enforcement proceedings

In the Matter of Anthony Fareri

An Administrative Law Judge has issued an Order Making Findings and Imposing Remedial Sanctions by Default (Default Order) in Anthony Fareri, Admin. Proc. No. 3-14310. The Order Instituting Proceedings (OIP) alleged that Fareri participated in a collusive scheme to manipulate the market for two penny stocks. It further stated that, on Feb. 28, 2011, the U.S. District Court for the Southern District of Florida entered a final judgment against Fareri, permanently enjoining him from future violations of several antifraud provisions of the federal securities laws.

The Default Order finds the allegations of the OIP to be true. It concludes that, pursuant to Section 15(b)(6)(A) of the Exchange Act of 1934, it is in the public interest to bar Fareri from association with a broker, dealer, investment adviser, municipal securities dealer, or transfer agent. (Rel. 34-64413; File No. 3-14310)

In the Matter of Guy Albert De Chimay

On May 5, 2011, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 203(f) of the Investment Advisers Act of 1940, Making Findings and Imposing Remedial Sanctions (Order) against Guy Albert de Chimay. The Order finds that according to allegations in the Commission’s related civil injunctive action, entitled Securities and Exchange Commission v. Chimay Capital Management, Inc. and Guy Albert de Chimay, Civil Action Number 1:10-cv-04582 (SDNY) (WHP), Guy Albert de Chimay, age 47, allegedly misused and misappropriated investor funds, and allegedly falsely stated to investors that their funds would be invested and would earn returns of twelve percent. The Order finds that instead, Guy Albert de Chimay allegedly diverted $6 million of investor funds for his personal use, including subsidizing his lifestyle, to pay off counterparties to unrelated ventures, and to pay early investors who demanded return of their money. The Order further finds that in order to facilitate and then conceal his fraud, Guy Albert de Chimay allegedly falsified bank statements to reflect that he had millions of dollars at his disposal, most of it purportedly in offshore bank accounts. On January 31, 2011, in the related civil action, the United States District Court for the Southern District of New York permanently enjoined Guy Albert de Chimay from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

Based on the above, the Order bars Guy Albert de Chimay from association with any broker, dealer, investment adviser, transfer agent, municipal securities dealer, municipal advisor, and nationally recognized statistical rating organization. Guy Albert de Chimay consented to the issuance of the Order without admitting or denying any of the findings except admitted the entry of the partial judgment. (Rel. IA-3196; File No. 3-14373)

On May 6, 2011, the Commission revoked the registration of each class of registered securities of Global Energy Group, Inc. (GENG) for failure to make required periodic filings with the Commission.

Without admitting or denying the findings in the Order, except as to jurisdiction, which it admitted, GENG consented to the entry of an Order Making Findings and Revoking Registration of Securities Pursuant to Section 12(j) of the Securities Exchange Act of 1934 as to Global Energy Group, Inc. finding that it had failed to comply with Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 13a-1 and 13a-13 thereunder and revoking the registration of each class of GENG’s securities pursuant to Section 12(j) of the Exchange Act. This Order settled the charges brought against GENG in In the Matter of Circuit Systems, Inc., et al., Administrative Proceeding File No. 3-14316.

Brokers and dealers should be alert to the fact that Exchange Act Section 12(j) provides, in pertinent part, as follows:

No member of a national securities exchange, broker, or dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security the registration of which has been and is suspended or revoked . . . .

In the Matter of Circuit Systems, Inc.

An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default as to Four Respondents (Default Order) in Circuit Systems, Inc., Admin. Proc. No. 3-14316. The Order Instituting Proceedings alleged that five Respondents repeatedly failed to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission (Commission).

The Default Order finds these allegations to be true as to four Respondents and revokes the registrations of each class of registered securities of Circuit Systems, Inc., Integrated Medical Resources, Inc., iNTELEFILM Corp., and LOT$OFF Corp., pursuant to Section 12(j) of the Securities Exchange Act of 1934. The proceeding has been stayed as to Global Energy Group, Inc., as the Commission has approved its Offer of Settlement. (Rel. 34-64417; File No. 3-14316)

Self-regulatory organizations

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by the EDGX Exchange (SR-EDGX-2011-13) relating to amendments to the EDGX Exchange, Inc. Fee Schedule has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of May 9. (Rel. 34-64392)

A proposed rule change filed by the EDGA Exchange (SR-EDGA-2011-14) relating to amendments to the EDGA Exchange, Inc. Fee Schedule has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of May 9. (Rel. 34-64393)

Securities Act Registrations

The following registration statements have been filed with the SEC under the Securities Act of 1933. The reported information appears as follows: Form, Name, Address and Phone Number (if available) of the issuer of the security; Title and the number and/or face amount of the securities being offered; Name of the managing underwriter or depositor (if applicable); File number and date filed; Assigned Branch; and a designation if the statement is a New Issue.

Amendments to the Registrant's Code of Ethics, or Waiver of a Provision of the Code of Ethics

5.06

Change in Shell Company Status

6.01

ABS Informational and Computational Material.

6.02

Change of Servicer or Trustee.

6.03

Change in Credit Enhancement or Other External Support.

6.04

Failure to Make a Required Distribution.

6.05

Securities Act Updating Disclosure.

7.01

Regulation FD Disclosure

8.01

Other Events

9.01

Financial Statements and Exhibits

8-K reports may be viewed in person in the Commission's Public Reference Branch at 100 F Street, N.E., Washington, D.C. To obtain paper copies, please refer to information on the Commission's Web site at http://www.sec.gov/answers/publicdocs.htm. In most cases, you can view and download this information by using the search function located at http://www.sec.gov/edgar/searchedgar/companysearch.html.